Press Release

U.S. Department of Commerce Invests $2.7 Million in American Rescue Plan Funds for Expansion of High-Speed Internet in Rural California

WASHINGTON – Today, U.S. Secretary of Commerce Gina Raimondo announced that the Department’s Economic Development Administration (EDA) is awarding a $2.7 million grant to Golden State Finance Authority, Sacramento, California, for high-speed internet planning. This grant is funded by the American Rescue Plan.

This project will support the development of a strategic plan to guide the expansion of high-speed internet across 26 rural counties of California. This EDA grant will be matched with $1.2 million in local funds and is expected to generate $400 million in private investment, according to grantee estimates.

“President Biden is committed to harnessing the full power of the federal government to ensure our nation not only recovers from this pandemic but builds a better America for the future,” said Secretary of Commerce Gina Raimondo. “This award reaffirms the President’s commitment to increasing internet accessibility throughout the United States and lays a strong foundation for the critical investments we will make to expand high-speed internet thanks to the Bipartisan Infrastructure Law.”

“The Economic Development Administration plays an important role in supporting community-led economic development strategies designed to boost coronavirus recovery and response efforts,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo. “This investment lays the foundation for the future expansion of high-speed internet to rural and underserved areas of California.”

“The digital divide holds back too many communities across the country, including here in California,” said Governor Gavin Newsom. “This grant will support the expansion of high-speed internet in rural, underserved areas of the state, complementing California’s historic commitment to achieving broadband for all. I thank the Biden Administration for its work to deliver affordable, reliable high-speed internet across the nation.”

“From education to health care, access to high-speed internet is essential,” said Senator Alex Padilla. “This funding will help rural counties across California build the foundation they need to expand access to high-speed internet. I’m glad to see the American Rescue Plan continue to improve economic opportunity for all Californians.”

“Broadband access is no longer a luxury – it is a fundamental part of modern life,” said Congresswoman Doris Matsui (CA-06). “Our children need broadband for their schoolwork. Families need to stay connected to find work and access important social services. Regardless of zip code or income level, Americans need to be able to get online. That’s why the partnership between the federal government and local organizations is crucial to helping us close the digital divide and get these vital tools to all Americans. This investment lays the important groundwork for us to build upon as we continue our work to expand access to even more Californians.”

This project is funded under EDA’s American Rescue Plan Economic Adjustment Assistance program, which makes $500 million in Economic Adjustment Assistance grants available to American communities. The Economic Adjustment Assistance program is EDA’s most flexible program, and grants made under this program will help hundreds of communities across the nation plan, build, innovate, and put people back to work through construction or non-construction projects designed to meet local needs. Effective May 26, 2022, EDA has officially closed all of its American Rescue Plan programs for applications. The $3 billion program funding will be awarded on a rolling basis through September 30, 2022.

About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA invests in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.